The certification of the research and development tax credit is now a strategic tool for companies investing in innovation. Introduced by Law No. 122 of 4 August 2022 with the aim of giving greater certainty to the matter, this certification puts companies on the safe side, guaranteeing the compliance of individual projects with the regulations in force and thus reducing the risk of disputes by the Revenue Agency. Dr. Gabriele D’Aloisio, Sole Director of Q Consulting, a company highly qualified in strategic business consulting, explains in this lengthy interview how tax credit certification helps to stimulate business innovation and competitiveness.
by Roberta Imbimbo

Dr. D’Aloisio, can you briefly explain what certification of the R&D tax credit is?
The certification of the tax credit for research and development is a process aimed at verifying and certifying that the activities carried out by a company are indeed among those eligible as research and development, in compliance with the tax regulations in force. In practice, this certification ensures that the expenses incurred by the company for research and development activities are correctly documented and meet the requirements set forth by law in order to benefit from the tax credit. This certification model constitutes a significant advancement towards a more transparent and reliable system for determining and managing the tax credit for research and development activities (RSID) in our country, favouring its application in a context of operational certainty. Certification represents an important tool for companies, allowing them to certify that their projects comply with current regulations and, consequently, to reduce the risk of disputes by the tax authorities, as well as to avoid penalties or revocation. This mechanism is particularly relevant for companies of any size, especially those that have accrued significant tax credits that have not yet been audited by the tax authorities, offering preventive protection and greater serenity in the management of the tax benefit.

How has the R&D tax credit legislation evolved over time?
The regulatory evolution reflects the constant adjustment of the legislative framework to ensure ever greater transparency and traceability of expenses, tax security for beneficiary companies, and greater control over the correct use of this incentive. The regulation of the research and development tax credit was first introduced with Decree-Law No. 145/2013, Art. 3 and made operational with the 2015 Stability Law. Over the years, however, the regulations have undergone several regulatory changes, specifically since the Agenzia delle Entrate began to intensify its checks on the eligibility of activities, detecting interpretative errors and abuses, which led to the revocation of most of these credits. A significant change therefore occurred with Budget Law No. 160/2019, which expanded the list of eligible activities to include not only R&D, but also technological innovation, technological innovation 4.0 and green, design and aesthetic ideation (RSID). This certification model also reaffirmed the centrality of the Frascati Manual and thus the mandatory compliance with its criteria – novelty, creativity, uncertainty, systematicity and transferability and/or reproducibility – in the qualification of R&D projects carried out from 2015 to date. Another key step was the establishment of the Register of Certifiers of R&D, Innovation and Design Tax Credits, set up at the Directorate-General for Industrial Policy, Industrial Conversion and Crisis, Innovation, SMEs and Made in Italy; basically a list of individuals and companies recognised by the Ministry as R&D experts. Finally, with the decree of 4 July 2024, the latest Guidelines for the correct application of the tax credit, the ones in force today, were approved.

How does tax credit certification help stimulate innovation and competitiveness? What benefits have you found among companies that have made use of this measure?
The certification of the tax credit for research and development is an essential element in stimulating innovation and increasing the competitiveness of companies. This tool provides companies with the certainty that they are operating in compliance with the regulations in force, significantly reducing the risk of disputes, penalties, and revocations by the Revenue Agency. This security allows companies to invest with greater peace of mind in innovative projects, fostering the link between creativity and concrete results. For Italian companies in particular, this measure enhances the Made in Italy brand, known globally for excellence in sectors such as design, fashion, technology and sustainability. The possibility of transforming ideas into operational reality strengthens the role of Italian companies as protagonists of international innovation. In addition, the certification system, by offering transparency and reliability, makes Italy a more attractive environment for foreign investors, who are more incentivised to finance research and development projects thanks to the regulatory security that this instrument guarantees. Companies that have availed themselves of this measure have experienced important benefits. They have increased investment in research and development while optimising their fiscal management and freeing up financial resources for further strategic initiatives. Certification has strengthened corporate reputation, consolidating the trust of stakeholders such as customers, partners and investors. In addition, many companies have had the opportunity to attract and retain qualified talent, improving their ability to innovate and develop competitively in the global market. The certification of the tax credit, therefore, not only supports the growth of Italian companies, but also consolidates the country’s position as a reference point for ingenuity and innovation, enhancing the competitiveness of Made in Italy on an international level.

For more info https://qconsultingsrl.com

Previous articleSIL.CA Consulting, excellence at the service of human capital
Next articleYou need ‘Strategic Strabismus and Holistic Vision’ to successfully govern a family business